The Federal Reserve recently announced
that it's going to be raising interest rates in the near future, and then probably two other times in 2018. But what does this mean for you? Well, probably a lot of things, both direct and indirect, even if you don't live or work in the United States. However, what I'm going to focus on for this post is how rate hikes might affect how much money you could afford to borrow (in this case, to buy a house).
Let's say that you've figured out that you can afford to pay $2,000 per month for the principal and interest on a mortgage*. And let's say that today, you could get a 30-year fixed mortgage at 4.125%. Let's also say that after one or more r... Read more...